For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

charleshoskinson

Didn't know you got $500k funding in the beginning. What did they get in return?

$500,000 from Bitfund.pe and $75,000 from Li Xiaolai directly in exchange for 25% of I3. I personally negotiated the terms of the deal back in June and July. Dan and I finalized it in a meeting with Li over skype at the VTCRC. Li and I are good friends and have been working together since the Bitcoin Education Project.

charleshoskinson

What does it mean to own 25% of Invictus seeing as it's a non profit? We're funds invested in PTS or AGS?

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Invictus Innovations was incorporated July 4th as a for profit C-corporation in the State of Virginia and solicited investment, provided a prospectus to Li Xiaolai and represented itself as a profit seeking entity during my time as CEO and co-founder. If that has changed under Dan's leadership, then it's news to me and I suspect Bitfund.

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bitbro

But profit will only be produced by decentralized autonomous companies, so where do i3's profit seeking objectives actually meet with their theory of DACs? And how exactly did li xiaolai and any other initial investor see that their investment would return over time?

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charleshoskinson

But profit will only be produced by decentralized autonomous companies, so where do i3's profit seeking objectives actually meet with their theory of DACs? And how exactly did li xiaolai and any other initial investor see that their investment would return over time?

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I have no knowledge of that strategy or plan. It was developed after I left. The original strategy involved monetizing Keyhotee as a platform on a per user basis, activities related to the BitShares protocol, and a hardware line.

This isn't uncommon. New CEO new strategy. I can only speak for the activities I was involved with when running Invictus, which stem from convincing Li to invest up until right after the Atlanta conference in October. I have had no involvement in any decision, activity or strategy of Invictus since that time.

But profit will only be produced by decentralized autonomous companies, so where do i3's profit seeking objectives actually meet with their theory of DACs? And how exactly did li xiaolai and any other initial investor see that their investment would return over time?

It has been said/implied in other places, but I would like to outline our strategy for Invictus making a return for the shareholders of I3.

1) Invictus develops software at-cost and takes no profit as a company. Ie: We will be spending 100% of AGS funds on R&D with no fee-for-service. a) Officers in the company receive salaries far below market value.

2) Invictus used initial VC funds to do the following: a) build & develop a business plan b) build PTS c) mine & buy PTS d) contribute funds to AGS on equal footing with everyone else. e) we have only received $450K of the initial $575K commitment as scheduled.

3) As a result of the initial steps the company holds free and clear (as profit) about 5% of the Feb 28th snapshot which we estimate to be worth about $2.5 million based upon PTS price prior to snapshot. If we were to distribute everything except the AGS funds our investors would already see a profit and we haven't even released our first full DAC yet.

4) As we spend the 4+ million in AGS funds we have received we will grow the value of our 5% along with the other 95% which is owned by the community.

5) The nice thing about this strategy is that our 'profits' are all in the form of capital gains.

The numbers and figures used in this example are mere approximations and should not be construed to represent actual numbers which only our accountant has.

The original business plan when Charles was CEO was something along the lines of: 1) Build Keyhotee and attract a lot of eyeballs (users) 2) Monetize these eyeballs through hardware sales (wallet, miners, add-on services) 3) Build DACs that use our dedicated mining hardware. 4) Run a mining pool and collect all of the fees.

As you can see we had to pivot our business plan when I eliminated mining. You can also see that our new business model aligns our interests with those of the community much better than the old plan. By owning shares in profit generating DACs Invictus in turn also generates profits.

Lastly we are partnering with other companies and we are earning revenue from consulting and custom development (outside of AGS).

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For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

charleshoskinson

The original business plan when Charles was CEO was something along the lines of: 1) Build Keyhotee and attract a lot of eyeballs (users) 2) Monetize these eyeballs through hardware sales (wallet, miners, add-on services) 3) Build DACs that use our dedicated mining hardware. 4) Run a mining pool and collect all of the fees.

This is a blatant mischaracterization of the business strategy to say somehow mining and hardware were the only planks to profit. In fact they were the minor profits to the application ecosystem Keyhotee could have enabled. But it's really a moot point, you guys pivoted to a different model, which you have every right to do as the CEO of Invictus.

It was not my intent to mischaracterize anything Charles. I was just trying to recall from memory what the plan was. So to be fair, lets review a segment of our pro-forma from our original plan:

Quote

Invictus Innovations has four primary revenue streams:1. Monetization of user base through partnerships with service providers2. Monetization of user base through hardware sales3. Monetization of user base through app-store sales4. Monetization of a cryptocurrency portfolio derived from various new blockchains

Out of this plan I have eliminated most of 2 & 3. We are left with #4 for which the plan of monetization of crypto-currency portfolio relied heavily on strategies to acquire it via mining and pools. I addressed (wallet, miners, add-on services) to cover 1, 2, and 3 in our plan.

So I may have recalled / expressed it slightly differently, but it was hardly a mischaracterization.

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For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.